Strategies for CAs in Practice-Post Covid-19 times CA Guru ...CA Guru Prasad Partner Guru & Jana....
Transcript of Strategies for CAs in Practice-Post Covid-19 times CA Guru ...CA Guru Prasad Partner Guru & Jana....
Strategies for CAs in Practice-Post Covid-19 times
CA Guru PrasadPartner Guru & Jana
Here to Where
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Is it possible
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It has been over 2 weeks, we all are home
Change is the only constant – we have seen this in the
past:
ROC Returns online
UDIN for India
E-Scrutiny for India
GST Portal
PRESENT SCENARIO – COMPOSITION OF FIRMS IN INDIA
Predominant composition of Indian CA firms - small in size
Proprietorship firms/ Partnership firms are most common form of organization.
There are number of barriers that plague the growth of the small firms into medium or large sized firms.
Proprietorship
No of
Partners
No of
Firms
No of
Partners
No of
Firms
No of
Partners
No of
Firms
10 135 21 4 32 2
11 76 22 2 38 1
12 73 23 3 39 1
13 35 24 4 44 1
14 22 25 NIL 61 1
15 19 26 NIL 63 1
16 17 27 2 66 4
17 11 28 3 67 1
18 6 29 2 92 1
19 9 30 2 139 1
20 5
Firms having potential to
grow as BIG 8/20444 firm
s
Topics to be discussed today
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Covid ImpactOrg structure & VetoHome Work
Networking -guidelines
Segmentation & Positioning
New Areas to venture out
Distance matters
HR StrategiesTech Strategies
Business Strategies
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4 5 6
7 8
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Chinese Covid-19 Impact
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The situation CA firms face
Data in “Server” at office
Tax scrutiny missing
Time for bank audit
Use this as a check list
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The situation CA firms face
Collections always a
problem, BUT
Salaries / stipend
Client business is down
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The situation CA firms face
Power with ME
They work, when I
am there at office
New clients?
Where are they
The list can go on, till the cows come home. But enough to lament
We already have enough negative outside, lets now see how we can better our lives
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What could end up is
A big expenditure Minimal result Less/No business
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What can you do
Sitting at home??
Chinese Virus Impact
1
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Home work
2
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What can business owners do at home?
Employees Clients contact
HOME WORK
Client Mining
New Pastures Investment advisory Our own Data
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Employee Engagements
2
The connect was established for over 2 decades
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Keep in touchwith clients
Home Work
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Client Mining
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NEW
PASTURES
2
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InvestmentAdvisory
Home Work
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Your own Data
Home Work
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Organisation Structure
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Organisation Structure
Transparency in an organisation
Increment based on Performance
Succession Planning
13 years and no Partner
reduced
Partnership firms break
My Share is not big.
Can the Pie be Bigger
Organisation Structure
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2
10.5 0.2 0.1
0
1
2
3
4
5
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0% 20% 40% 60% 80% 100% 120%
Absolute Share of profits (amount in Crores)
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Organisation Structure
I got this business?
I got this Client?
I don’t want to ask my Senior Most reportee – the tough questions
Ego amongst partners – Big Issue
Organisation Structure
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An Open Office
Organisation Structure
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Organisation chart – Pre Covid
MumbaiAccountsConsultCorporate law
2 Managers 1 Manager 1 Manager 1 Manager 1 Manager3 Managers 12 Manager
15 Exec 4 Executives 3 Executives 1 Executive 14 Exec 4 Executives 35 Exec
Partner
Taxation Partner Partner
Audit
PartnerLiaison
Chartered Accountants
Organisation Structure
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Long Term
Who stood by me in tough
times
LoyalistTransactional
Organization
Waste, but good to have
Organisation chart – Post Covid
Organisation Structure
Weed Out
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Network, & ICAIGuidelines
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Benefits of Networking
International Exposure
Experiencing different work culture, economies of scale
Domestic Branding – Demand for umbrella services can be met
Referral practice for inbound and outbound referrals
Business Development, client servicing-
Toe in Water approach
Young Partners Program
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4
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Benefits of Networking – Contd…
Pooling of resources -Expertise, Experience & Competency
Reduces dependence on one’s client
Improves professional standing and client serving capacity
Employee retention-attract talent and retain
Risk bearing capacity increases
Promotes specialization-Exposure to various
clients builds confidence
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8
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International Association
How does it work ?
Iindependent accounting firms.
Network – NO WORK
Each firm is a separate legal entity
The Coordinating entity is usually organized as a LLP/ corporate entity and overseas the
functioning of the network.
Cost of network is funded by member firms – subscription fee
.
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How to identify a Network?
How global is a network?
• How many countries• How many firms
Quality of members already present
What quality control measure does the association insist from its members?
Fee sharing structureWhat is the cost and how
beneficial is the association for you?
Range of services
What are the range of services the association provides
specialized services in?
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0
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What Steps you need to take to become a member?
01One firm one statepolicy
02Check for Local presence
03Talk to a local member Get a review of the association.
06Write to the Secretariat
05Be open for an Inspection –But sign NDA
04Infrastructure to be pruned
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Forum of Firms
Network of Network is the forum of firms
Objective of the forum
• High Quality practices• The Forum coordinates trans national audits• Associated with IFAC
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Some International Networks Part of the Forum of Firms
The below networks are also member of the Forum of Firms. The Forum of Firms Is an association of 23 International networks of accounting firms
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3
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Some More International Networks3
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How ready are you? Grab a book & Pen – Answer these
questions
💻Do you have internal
quality control procedure?
🔀Is communication of
independence formalised?
🚀Are the firm’s ethical governance practices
documented ?
Are partners of firm ultimately responsible for QC process?
Do you have a history of disengagement on independence
or conflict of interest?
🎯Is Technology used in the firm, and is there consciousness of its local brand?
🔀
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5
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🔀Extra Time – Are you ready
to commit your time in addition to the daily routine?
🚀How quickly can you reply to queries? Do you have a
plan?
$It involves cost- Are you ready to pay the membership fees?
Travel- Are you ready for the travel it may involve, National/
International?
🎯May require initiatives to contribute to the network, are you open to it?
How ready are you?
Answer these questions in your mind
🚀
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💻SPOC - can you be the
one?
🔀Punctuality – Would you
be able to respond to queries on time?
🚀Are the employees and
other members happy with the association?
May not generate any business for a few years – Are you OK
with it?
Are you ready to adopt an international culture for better,
which may require changes in the current procedure?
🎯 Are you OK with monitoring of policies and internal framework.
How ready are you?
Answer these questions in your mind
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What did you find in these
Mergers ?
MY NAME!
What is the difference?
Global scenario & Indian scenario
The firm is bigger than ME I
Succession Planning
is important
Span of longevity
SMost Mergers are
Out side India n
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Y
Nostalgic
Fear of Failure
What will the society
think
Established in 1934
All is well now
We are not a product, it is a bundle of
emotions and value systems
Me and My Family
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Types of Mergers- In India
Delhi/
Bangalore/
Kolkata/
Mumbai.
Visiting card Merger
My Firm +
Your Firm India firm and local firm is different
Empanelment Merger CAG + Bank
Overhead Mergers Polyclinic
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How Ready are You? Answer these questions in your mind to know if you are Merger ready
Pick a pen and paper, lets start.
💻 Post Merger, a Partner can become Manager
🔀 Work life balance
🚀You need to report to someone?
ME or is it the Organization? Which is more important for you?
Capital for Merger – Do you have it?
🎯Risk – Can we start from ground 0
Are you willing to come out of the comfort zone and fight it out.
🎫My freedom – I don’t want any one to enter.
📱 Travel- Around 6-8 days or more in a month.
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How Ready are You ?
Answer these questions in your mind to know if you are Merger ready
💻 Sentiments about the existing firm
🔀 Adopt new culture – Are you ready?
🚀Would you like to be policy driven
Society - would you feel difficult to face, as you got sucked in?
What does the Family say? Are they supportive of your decision?
🎯 I get success myself, or should I call it team success and join.
Existing fun will go
🎫Are you open to criticism –constructive or destructive.
📱 Are you hungry for more work, exposure, more knowledge.
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How Ready are You ?
Answer these questions in your mind to know if you are Merger ready
💻 Are you ready to take up the BIG GAME
🔀 Do you think Merger is alternative for Corporates
🚀 Do you enjoy All India Meetings instead of office meetings
Do you need to invest lot of time in meetings, and conference calls.
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Segmentation & Positioning
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THOUGHT 1 - Positioning
Specialise in taxation
Specialise in service taxes IFRS Specialization Business Consulting
Partner
Strategy is a No man’s job.Business Development has become our part time service.
Let him file his Tax Return – Not mine. Doctor does not go for a walk
We have many Advisory Services – how about USWe Know it all syndrome – CA firms have no Coach
Segmentation & Positioning
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POSITIONING - Which part of the pyramid are you in?
LARGE MNC FIRMS
ASPIRING INDIA
ARE WE HERE
Segmentation & Positioning
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THOUGHT 2 – STRATEGY OF POSITIONING
Can I tell NO to a client
Segmentation & Positioning
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THOUGHT 3 - A typical Profit & Loss Account
Segmentation & Positioning
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New Areas you can Venture in to
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Area 1 – Family Arrangements
Kids
Brothers Start
Business
C – 33%B – 33%A – 33%
B1 B4B3 G1B2 B5 G2
Joins
BusinessCA Doctor Joins
Business
Aboard Home
Maker
New Areas you can Venture in to
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If the Kids join Partnership Firm
B1
B4
B3
B2G2
What will be the Share?
What will be the Share?
What will be the Share?
Will he get anything?
Will she get anything?
New Areas you can Venture in to
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1 Who owns – Who controls
2 Vision Documentation
3 Shareholders’ Meeting
What could you do?
4 Who will own Shares
5 Who comes to Board
Share capital structure, VETO rights
structure
Values, Mission, Vision
Normal rights
VETO right
Super Majority right
Siblings
Inter cast marriage
Adoption
Death
Advisory Main Board SPV Board
Family agreement governs
this
New Areas you can Venture in to
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Area 3: Specialized Services
DEMAT AGENTS
Coordinating with DPs and Banks for smooth functioning of Account opening and such
hassle free procedural requirements.
Performing Dematerialising and Rematerializing services.
Ensures to offer you a safe online and seamless track of Investments.
Single sheet to show ownership of the VC or PE
Handover of ownership documents to investors easily possible
CORPORATE LAW SERVICES
We function under your label, professionalism and thought process
The high end legal work will have rate X, while corporate law which is the nerve system and
equally important, could have rate X (minus)
It is a digital world, we physically remain in Guru Jana offices, but virtually can be an arm of
the legal firm
Clients of law firm can have consolidated, single umbrella service offering
New Areas you can Venture in to
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Area 3: Specialized Services
SHAREHOLDERS AGREEMENT COMPLIANCE
Would have a control mechanism to verify and confirm that all the shareholders agreement
and definitive have been adhered to
To ensure that the board, shareholders meetings, committee meetings are as per the
definitive.
To ensure that the monthly reporting, promoters salary, the VETO rights are implemented as
per the SHA and other definitive.
We will submit periodic reports to confirm the adherence. It can be summed up as ‘internal
audit’ of corporate governance.
VC CUSTODIAN SERVICES
Custodian services for all the original agreements, Share certification, all relevant Board
documentation, shareholder documentation, investor rights review etc
Portfolio company wise dashboard – which would give a ‘green’ or ‘red’ monitoring of all
Portfolio Company data
All portfolio wise matrix to the investor in a matrix – showcasing document control.
New Areas you can Venture in to
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Area 3: Specialized Services
DATA ROOM CREATION
Regular updation of Data room – Preparing the Company for Investor’s
review.
Independent Review – Providing compliance related advice and
assurance.
Addressing the Snags – Assisting the Company in taking corrective
measures before approaching Investors.
Co-Ordination – Addressing queries of Investor / representatives and
coordinating for seamless execution of Due Diligence Review.
Auto Updation – Creating a system whereby data room updation
happens automatically within the routine work of Accounting and
Finance Team.
New Areas you can Venture in to
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Area 3: Specialized Services
DIRECTORSHIP SERVICES
Investor Representation – Represent the investor as a Board member.
Senior Partners of the firm could act as nominee directors.
Business Support – Provide insights on micro-management of business.
Reporting – Provide timely and updated information on the Investee
Business and financial status to Investor – Quarterly Report
Investment Watch – Whistle blower. Keeping Investor updated about
happenings in Investee Company.
Director by Law- Assume all risks and liabilities of a nominee director,
as prescribed by various statutes.
New Areas you can Venture in to
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Area 3: Specialized Services
VENDOR DUE DILIGENCE REVIEW
Independent Review – Independent, robust and expert review, from the
point of view of both the Company and investor.
Addressing the Snags – Assisting the Company in taking corrective
measures before approaching Investors.
Deal Assistance – Providing inputs for Deal structuring and negotiation.
Pricing – Inputs on business plan and critical opinion on vendor’s bid.
Co-Ordination – Addressing queries of Investor / representatives and
co-ordinating for seamless execution of Investor’s review.
Advisory – Financial, legal, regulatory and commercial advisory, as and
when required
New Areas you can Venture in to
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Area 4: IBC
Voluntary Insolvency
Cases
Forensic Audit
Liquidation Cases
New Areas you can Venture in to
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DISTANCE MATTERS
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Death of Old Times
Bulk Tax Returns
Multistate VAT Understanding
Bank Audits
Stock Take RFID
Consolidation of audit in to Single audit
NO GST audit, No Tax Audit, No TP Audit – Only one Audit
Death of Old Times
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In the age of growing machine IQ, anything that is vaguely repetitive, will not last
Digital DisruptionRise of Artificial Intelligence ,MachineLearning, Blockchain, Automation, IOT& Mobile
DIY ApproachWeb tutorials, webinars, youtube videos that allow clients to do thingsthemselves
1 2
AuditCorporate Law
Accounting
Regulatory ReformsSimplification of laws, enhanced and easier codification of rules
Digital ClientsClients are quickly adopting digital technologies
3 4
Digital in GovernmentImproved government services, enabling direct government citizen convergence on digital platforms
Alternate Service ProvidersWebsites that sell forms, legal service outsourcing, commoditised end to end services
5 6
Audit, Accounting and Corporate law seem to be faced with disruptive trends
DISTANCE MATTERS
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RECENT ECONOMIC TRENDSEase of Doing
business in India
India improved its ranking in the
World Bank's Doing Business Report
by 14 spots over last year and is
ranked 63rd among 190 countries in
2020 edition of the report
Numerous foreign companies are
setting up their facilities in India on
account of various government
initiatives like Make in India and
Digital India
India recorded FDI
growth of 16%
South Asia recorded a 10% increase
in FDI to $60 billion. The growth was
driven by India, with a 16% increase
in inflows to an estimated $49 billion.
The majority went into services
industries, including information
technology
Largest startup
base
• Liberisaltion of fiscal policy with
respect to benefits to start-ups
• Third largest base in the world with
over 9,000 start-ups and witness
of more than 25 unicorns
Disinvestment
Recent moves by government to
privatise the ownership in public
sector companies – which may open
up new avenues to the domestic and
foreign investors
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HR Strategies
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Time spent on HR
We have to move from payroll to HR.
It is not a month end Salary sheet activity Any more
30%
40%
10%
20%
Dept Clients SOS Work
15%
25%
10%10%
40%
Dept Clients SOS Work HR
HR Strategies
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Thought 1– ibm v/s infosys | our internal branding
Belongingness in the Organization
Relationship of left employees
Pride in the Organization, Creation of Culture internally
Song for the Office
Good News Board
Today’s Special at office
Nostalgia book, There to here ||| Here to Where
Vision exercise
360 Degree Review or Town Hall meetings
Business Strategies
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Integration of Values
Values
Criteria Technology Profit Rewards Leadership
Hiring
Sustainability
Reward
Promotion
Role
Leadership
Succession
Planning
HR Strategies
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Interviewing is an Experience
Google forms for Interview
Team Photo’s
How are you treated
Security/front office
What I see when I come for interview
A.I Tools
We don’t get employees
HR Strategies
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Tech Strategies
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MANAGEMENT PROBLEMS
• PARTNERS IN ROUTINE
JOBS
• REPEAT INSTRUCTIONS
• EMPLOYEE
PROFITABILITY
• HOW TO KEEP TRACK
• CLIENT PROFITABILITY
EMPLOYEES:
• NO SYSTEMS
• MY SENIOR HAS NO TIME
•NO INSTRUCTIONS
•SEARCH FILES
CLIENTS
• YOU DON’T GIVE TIME
• MY WORK?
• CORRECT TALLY?
• SEND SAME STAFF
Tech Strategies
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Services rendered @ a GLANCE – Solution -1
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Create a Service, assign task 200 Rs.
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Solution 2 – individual returns
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Solution – 3 our vivid
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Solution – 4, Can I have a software developer with me
Website in Khazak – 20K
Tool in Kanpur – Rs 2 k
SPOC Malaysia Rs 50 k
Profile – Madagascar –3k
M-Day app Madagascar – 30K
IT Cyber audit - Spain – Rs 20K
IT Director - Italy – Rs 50 K
Tech Strategies
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Solution -5, Minimum efforts maximum results
Tech Strategies
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Solution -6
Tech Strategies
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Business Strategies
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Thought 1 – your clients are satisfied, give more
Are we rendering a CONSULTING assignment to an AUDIT client?
Are we rendering PAYROLL services to a TAXATION client?
The answer is…Business Strategies
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We don’t stop here…
ARE OUR CUSTOMERS
SATISFIED?
If YES, what more do they deserve
Business Strategies
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THOUGHT 2 – CAN I GET AN INFLUENCER
We merged 6 years ago. Why?
We merged a year ago Why?
We became a network 4 years
ago Why?
Large VC players PE players Senior Advocates
Independent DirectorsCorporate CFO
Business Strategies
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Thought 3 – god is busy – can I help you
All you need is a contact on a CSR mode with
Incubators, You have these to start with
GUILTY | CPA | PASTURE | FINANCE MAN
BACK TO PRACTICE | INDIA- $$$$$Business Strategies
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THOUGHT 4 - ego is a fascinating monster
o Usually ego comes and everything else walks out
o But in our world ego buys you business
o Innovative Interventions in your profession can be a good experience of satiation
o Double advantage Learn too + Business too
Business Strategies
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Thought 5 - the Ripple Effect
What effect does it have on
professional assignments and
fee?
Let’s talk about the ‘theory
of referenciablity’
Raise your standards and
other services will follow
through
Are you a professional on the
go? Here we talk about
creating dummy works.
Business Strategies
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Thought 6 – over crowded specialist
• Trade offices, trade associations are
important
• Embassy Office
• Trade Commission
• Trade delegation is not just travel
industry
CAN I GO OUT AND GET WORK
Business Strategies
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Thought 7 – brand building
Make a statement and ask me
how
• Writing ICAI publications
• 1st in a billion
• paper less and open offices
• You can see my server
You have his blessing – he
has accepted your donation
Budget updates
Daily updates
Circular to clients
Sensory over load
Business Strategies
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Thought 8 – market place – target is narrower
Review of listed Companies Balance sheets
DIN number, and Company identification route
Security charges are high, Courier Costs are high
Exchange rate is high,
How to get ICAI award for the best Balance sheet
Hand written invites and letters – do you remember the Inland letters
Provident fund refund has not come
Competitors balance sheet for Rs. 100.
Business Strategies
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Thought 10 | industry specialization
I can speak Japanese. I only understand Germany
Business Strategies
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Thought 11 – corporate moving to entrepreneurship
India is the country with the largest number of entrepreneurs
Niche Service can be provided only to this segment
You do not need a Finance Department, I will Sign your Cheques also
Corporate world is a world of EMI’s let me start on my own
Business Strategies
Thank you….